Brazil sets price caps for April 4 auction

February 27 (Renewables Now) - Brazil's power sector regulator Aneel approved today the price ceilings for the April 4, 2018 power generation auction.

This tender will contract power from wind, solar, hydro and thermal plants that use biomass resources. Among renewables, biomass has the highest maximum bidding price -- BRL 329 (USD 102/EUR 83) per MWh.

In all, the country registered 48,713 MW of projects to participate in the bidding process. More details are available in the table below.

Source

Registered capacity

Price cap in BRL

Wind

26,198 MW

255 per MWh

Solar

20,021 MW

312 per MWh

Biomass

1,422 MW

329 per MWh

Large hydro (UHE)

114 MW

291 per MWh

Small hydro (PCH)

896 MW

Mini hydro (CGH)

63 MW

In Brazil, hydropower plants (HPPs) are divided into three groups depending on their capacity. UHE, with capacity exceeding 30 MW, PCH, between 1 MW and 30 MW, and CGH of up to 1 MW.

The government will award power purchase agreements (PPA) with a 30-year term for hydropower and a 20-year term for the remaining sources. Power supply is scheduled to begin on January 1, 2022.